Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Bush OKs Singapore, Global deal (Global Crossing)
CNN Asia ^

Posted on 09/21/2003 6:52:39 PM PDT by maui_hawaii

Edited on 04/29/2004 2:03:08 AM PDT by Jim Robinson. [history]

WASHINGTON (CNN) -- U.S. President George W. Bush has told Congress the administration will allow Singapore Technologies Telemedia to buy a 61.5 percent stake in the U.S. telecommunications firm Global Crossing Ltd.

Singapore Technologies is indirectly owned by the government of Singapore, and because of that the administration was required to conduct a review to determine if there were any significant national security concerns in the transaction.


(Excerpt) Read more at edition.cnn.com ...


TOPICS: Business/Economy; Extended News
KEYWORDS: cfius; globalcrossing; singapore; strategicindustry

1 posted on 09/21/2003 6:52:40 PM PDT by maui_hawaii
[ Post Reply | Private Reply | View Replies]

To: maui_hawaii
I do not understand why no one outside of Asia bid on this. It seems like a steal. All those assets for $250mil. I do not understand it. YOu would think that a baby bell would buy it - that is chump change.
2 posted on 09/21/2003 7:00:35 PM PDT by CasearianDaoist
[ Post Reply | Private Reply | To 1 | View Replies]

To: CasearianDaoist
I would assume that the competition in America already has presence here.

Asian companies might be aiming to expand their footprint globally, ie buy their way into the market.

3 posted on 09/21/2003 7:08:00 PM PDT by maui_hawaii
[ Post Reply | Private Reply | To 2 | View Replies]

To: maui_hawaii
This company gave Bush Sr. millions in stock. McCaullife made millions also. Bi-partisan corruption. Shameful. Everybody in government wants to line their pockets.
4 posted on 09/21/2003 7:17:07 PM PDT by Finalapproach29er ("Don't shoot Mongo, you'll only make him mad.")
[ Post Reply | Private Reply | To 1 | View Replies]

To: CasearianDaoist
I guess the good news is that the ChiCom front company didn't
acquire GX.
5 posted on 09/21/2003 7:27:24 PM PDT by MamaLucci ( Clinton met with Monica more than he did his CIA director.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: CasearianDaoist
Few were willing to bid because the market is enormously saturated. There is such incredible excess capacity that it will take years for the market to clear itself.

Do a little math and figure out the total bandwidth in use at any one time on Global Crossing's network. Then multiply by $30 per Mbit per month. The revenues are chump change too.

Add to that the emergence of MCI/UUNet from Ch11 and you've got the makings of another bandwidth price war.
6 posted on 09/21/2003 7:33:08 PM PDT by jas3
[ Post Reply | Private Reply | To 2 | View Replies]

To: CasearianDaoist
It seems like a steal. All those assets for $250mil. I do not understand it.

Neither do I. Especially when a year and a half ago, HW and STT was reportedly offering 3x as much for control of Global Crossing.

Must be that time value of money thing. Or Global Crossing had a silent auction and AT&T already purchased their fleet .

From China Brief

When Global Crossing filed a Chapter 11 bankruptcy on January 28, Hutchison Whampoa and Singapore Technologies Telemedia offered a US$750 million cash investment for a joint majority (79 percent) stake in the company. Global Crossing's management welcomed the deal, but some shareholders and creditors have objected. If the deal holds up, it would put a major international communications network, one used by the U.S. military and other government agencies, into the hands of a potential foreign adversary. Chinese military doctrine stresses information warfare and sabotage of communications systems as a key to successful asymmetrical warfare against the United States. Thomas Casey's seat on the NSTAC would thus seem inappropriate.

7 posted on 09/21/2003 8:26:00 PM PDT by ohmage (918-222-7241)
[ Post Reply | Private Reply | To 2 | View Replies]

To: ohmage
We've probably switched over to other secure communications over the past 20 months since Globla Crossing went bankrupt. We could use it as a source of disinformation if the foreign governments still think we're tied into it.
8 posted on 09/21/2003 8:30:50 PM PDT by Johnbalaya
[ Post Reply | Private Reply | To 7 | View Replies]

To: ohmage
Yes, I think that there must be some hidden poison in the firm. It makes no sense. Either that or it is some sort of sweatheart deal prompted by political concerns (I do not understand that one either.)

I do know that the military is moving to their own internal network for classified and combat operational data. That does not,of courese keep someone from screwing up the country at large. Internet2 should start coming out of the woodwork in the next few years. I wonder if insiders are expecting an entire new wave of build out?

Again, I am mystified, and I have some experience in the business.

9 posted on 09/21/2003 8:34:44 PM PDT by CasearianDaoist
[ Post Reply | Private Reply | To 7 | View Replies]

To: jas3
Yes, but it is so cheap. Just getting the fiber is worth it - just sitting on the fiber for a few years would be worth it. They must not be able to strip off the debt.
10 posted on 09/21/2003 8:38:48 PM PDT by CasearianDaoist
[ Post Reply | Private Reply | To 6 | View Replies]

To: Johnbalaya
Another good reason to discount the price!

Them Chinese, they didn't just fall off that intelligence hay wagon, did they? Even without the previous administrations help it looks like they must have figured that one out, judging from the price cut.
11 posted on 09/21/2003 8:44:23 PM PDT by ohmage (918-222-7241)
[ Post Reply | Private Reply | To 8 | View Replies]

To: CasearianDaoist
YOu would think that a baby bell would buy it

One more post before I sleep. As I recall, NYNEX was one of the original Global Crossing backers. I think they were disappointed with the experience and divested themselves of GC after they became Bell Atlantic.

Maybe it left a bad taste behind.

12 posted on 09/21/2003 8:57:54 PM PDT by ohmage (918-222-7241)
[ Post Reply | Private Reply | To 2 | View Replies]

To: CasearianDaoist
Maybe it is, maybe it isn't. It depends what other fiber is worth.

The fiber requires servicing, and a substantial capital outlay.

Moreover, fiber isn't quite a finite resource like three gallons of gas. New technologies allow old fiber to carry ever more traffic at higher bitrates and at different frequencies and over longer distances. Merely by installing new equipment every few hundred miles old fiber gets a new lease on life.

How many years would you guess until the glut of fiber capacity is no more?

Remember that when in US history railroads and canals were overbuilt, many of them ended up being worth zero.

Think what Cogent bought PSINet's US network assets for out of bankruptcy! A mere $10 million. PSINet spent at least $250 million building out this network.
13 posted on 09/21/2003 9:10:02 PM PDT by jas3
[ Post Reply | Private Reply | To 10 | View Replies]

To: jas3
How many years would you guess until the glut of fiber capacity is no more? My bet is 5 years, assuming that we are beginnig a new business cycle. That includes using new technologies to get better transmision rates out of the fiber.
14 posted on 09/21/2003 9:22:35 PM PDT by CasearianDaoist
[ Post Reply | Private Reply | To 13 | View Replies]

To: CasearianDaoist
Interesting question, eh?

I don't want to guess myself, but usage tends to double every couple years. We'll see what that means for the current capacity glut.

15 posted on 09/21/2003 9:30:14 PM PDT by jas3
[ Post Reply | Private Reply | To 14 | View Replies]

To: MamaLucci
I guess the good news is that the ChiCom front company didn't acquire GX.

Its been replaced by a Signapore government owned company with ties to China. I'm not feeling all warm and cuddly.

Whatever happened to IDT's bit for Global? IIRC it was about the same as the ChiCom one which is the same as the Signapore government owned company one.
16 posted on 09/21/2003 10:02:14 PM PDT by lelio
[ Post Reply | Private Reply | To 5 | View Replies]

To: lelio; maui_hawaii
MH - good catch.

Lelio - I felt somewhat happy until I came to your comment re: the chicom connection :-(. The PRC has been courting the SE asia countries. They've been going to Singapore quite frequently too. I'm assuming that the Homeland Security officials still have reservations about the deal...do you have any info if their concerns have been resolved (the article makes it sound that they are still unresolved)?

17 posted on 09/22/2003 2:19:31 PM PDT by batter (Boycott "Made in China")
[ Post Reply | Private Reply | To 16 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson